These comments are part of the “Twenty-fourth Report of the Standing Committee on Communications and Information Technology” on the ministry’s demands for grants, which was presented in Parliament on March 16.
The committee said that “allocation of more funds to the ministry can help in empowering citizens, promoting inclusive and sustainable growth of electronics, IT and ITES industries and promoting digital governance to ensure a secure cyber space.”
According to the report, MeitY’s budget estimate for 2026-27 is Rs 21,632.96 crore, while the budget estimate for 2025-26 is Rs 26,026.25 crore. The ministry told the committee that part of the cut reflects the discontinuation of the production linked incentive (PLI) component for large-scale electronics manufacturing, the tenure of which is expiring on March 31, 2026.
The Committee also noted that the difference between the Budget Estimates and the Revised Estimates in 2025-26 was attributable to lower expenditure during the first half of the financial year and delays in executing agreements under semiconductor manufacturing projects. The ministry told the panel that semiconductor manufacturing projects are “highly complex, technology-intensive” and approved companies have to meet prescribed conditions before fiscal assistance is released, resulting in delays in agreements.
The report also highlights implementation challenges in several programs, including interoperability gaps in e-governance systems, cybersecurity and privacy risks, and capacity constraints in digital infrastructure projects. It asked the Ministry to address these issues and update the Committee on progress.
On cyber security and digital security, the Committee sought an update on the creation of additional posts in the Indian Computer Emergency Response Team (CERT-In) and recommended strengthening of the Data Protection Board to improve safeguards for personal data and address incidents of cyber fraud and digital scams.
The committee also asked the ministry to ensure that funding shortfall does not impact the functioning of the National Informatics Center (NIC), which provides the core digital infrastructure for government platforms. It also recommended expanding digital public services with stronger local-language support to improve digital inclusion.
The report also discussed the implementation trajectory of the IndiaAI mission, saying variations in allocation partly reflect the dynamics of the program’s rollout after its approval in March 2024. According to the ministry, the initial phase focused on institutional setup, consultation and operational guidelines before scaling up activities in research, ecosystem development and international collaboration.
Among future initiatives, the panel suggested using the increased funding under the National Knowledge Network to establish a blockchain-based national digital research repository aimed at enabling secure knowledge sharing between research institutions.
The report recommends expanding digital literacy programs in rural and tribal areas and strengthening the IT ecosystem in underperforming states, including the Northeast, to support more balanced growth in India’s digital economy.
